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The First Time a Wild Rat Encounters a Food It

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The first time a wild rat encounters a food it has never tasted before,it usually displays

Understand how to formulate both directional and nondirectional research hypotheses from research problems.
Understand the relationship between sample and population in hypothesis testing.
Recognize and define Type I and Type II errors in statistical hypothesis testing.
Understand the significance level (alpha) and its role in hypothesis testing.

Definitions:

Bird in the Hand Theory

A theory that suggests investors prefer the certainty of dividend payments to the possibility of much higher future capital gains.

Dividend Distribution

The method by which a corporation's earnings are distributed among its shareholders in the form of dividends.

Retaining Earnings

Profits kept by a company for reinvestment in its operations rather than distributed to shareholders as dividends.

Residual Dividend

A policy whereby dividends are based on earnings after all projects with positive NPV are funded.

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